GoBruins said:
Correct. The octane rating really has to do with how fast the fuel burns...high octane fuel burns slower than low octane fuel.
Not exactly.
Octane is not a substance, it's a property. Specifically, it is a measure of how prone fuel is to combustion under compression. Cars with high compression engines need it to prevent detonation. Old cars are thought to need it because, as someone pointed out earlier, combustion chambers would lose volume to crud buildup, effectively increasing compression. And some cars need it where the engines have been tuned with very lean fuel mixtures and advanced timing in an effort to squeeze horsepower out of a given displacement, since these things can also increase the risk of detonation or 'knocking'.
Most cars that require premium will 'run' on lower octane fuels. But they do so because they are being protected by the knock sensor, which on newer cars signals the ECU to retard timing and enrich mixture. In a lot of cases, the consequent increase in fuel consumption and the dirty exhaust cancel out the economic benefits of the cheaper fuel, and in a lot of cases they don't.
Some cars will produce more power on higher octane. Most will not. A few will even suffer from it. Car and Driver did a great piece on this a year or two ago. It is a myth that octane equals power across the board but if, for example, you drive a later model BMW, it actually does.
Finally, at least where I live, premium fuels are not differentiated only by their octane rating. They also have more additives (things like detergents and fuel line anti freeze). That's really what you're paying for, though the oil companies rarely say so (in Canada, Shell and Petro Canada advertise this, where Sunoco, for example, happily feeds the octane myth suggesting that their ethanol enhanced fuels make cars more powerful. Don't get me started on ethanol).
The fact that there is no absolute truth on this stuff is why there is always so much debate. I use premium in my 00 DII. My logic goes like this: This engine, although not powerful, has been tuned to produce way more than its original design anticipated, so score one for octane. Running clean seems to be important to keeping them reliable, so score one for additives. It doesn't have power to spare, so even if there's only one more horsepower there I want it. I get good economy on premium, so that helps. Yeah, it's 11 cents a liter more expensive than regular where I live, but if I wanted cheap truck I would have bought a Toyota. I am right. But so are the guys who refuse to pay for premium. Like everything in life, you choose your problems and choose your risks.
Just my .02. Or .11.